Tokyo Gas reports 45% jump in net profit in April-September

Japanese utility Tokyo Gas on October 26 reported a 45% year/year increase in net profit for the April-September period (H2FY2023). The increase in profit was attributed to higher profit in the electricity segment. Net profit reached 104bn yen ($690mn) in H2FY2023 versus 71.6bn yen last year.

The company also raised its full-year profit forecast to 116bn yen, higher than the 101bn yen set in July as it expects a rise in energy solutions sales. The company revised its full-year assumptions for the oil price to $86.76/barrel from $81/barrel and for the exchange rate to 143.03 yen/dollar from 135.62 yen/dollar.

Tokyo Gas said that work is still underway to divest the four projects of its Australian subsidiary through a transfer of shares to MidOcean Energy Holdings, a subsidiary of the US-based EIG Global Energy Partners. The impact of this transfer is not included in the consolidated 2Q results and consolidated FY2023 forecast, the company said.

Last year, MidOcean entered into an agreement to acquire Tokyo Gas’ interests in a portfolio of four Australian integrated LNG projects for $2.15bn. Under the terms of the agreement, MidOcean will acquire Tokyo Gas’ interests in Gorgon LNG, Ichthys LNG, Pluto LNG and Queensland Curtis LNG. These integrated projects span Australia’s western and eastern coasts and supply LNG to Asia and to Australia’s domestic gas markets. The deal does not include the Darwin LNG, in which Tokyo Gas owns a stake.